Equity crowdfunding allows businesses to receive capital from investors in exchange for an ownership share of the company. Until recently, most Americans were left out of this conversation. With many states moving toward legalization of intrastate equity crowdfunding, entrepreneurs across the country may soon be able to use their state-specific exemptions to receive capital from new sources.
Kauffman Foundation Policy Engagement Manager Jason Wiens examines the benefits of intrastate crowdfunding in an article for Forbes.com. He focuses on its impact on the economic growth of businesses across the country, and how changes in crowdfunding policy could influence the future scope of financial backing.
Read an excerpt from the post below.
State Equity Crowdfunding Policies Hold Promise
More than two years after passage of the Jumpstart Our Business Startups (JOBS) Act, the U.S. Securities and Exchange Commission (SEC) is still writing the regulations that will govern equity crowdfunding in America.
Widely anticipated for its perceived potential to unlock hundreds of millions of dollars in capital, entrepreneurs and policymakers alike have been understandably upset by the slowness of the process.
Equity crowdfunding was billed as a solution to economic malaise as startups across the country would now be able to raise funds from any interested American and not just venture capitalists and accredited investors.
Read the rest of the post on Forbes.com to find out more.